If you own shares of Telstra Group Ltd (ASX: TLS), chances are you haven't seen much in the way of pleasing share price gains for a while.
Between October 2020 and May 2022, the Telstra share price was able to put on an impressive 60% or so, rising from around $2.80 a share to the (still-reigning) 52-week high of $4.46 that we saw eight months ago.
But ever since then, Telstra shares have stagnated. Today, the telco has opened the trading week with a 0.38% loss, which leaves Telstra shares at $3.98 each. That's a good 10.8% or so lower than that 52-week high of $4.46.
Of course, Telstra's famous dividends have comforted investors over this period. The company is currently trading with a fully-franked dividend yield of 4.25% – certainly nothing to turn one's nose up at. But it has still been a fairly lacklustre few months for Telstra investors.
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ASX broker calls 18% upside for Telstra shares
However, Telstra might not be staying at these kinds of levels for long if one ASX broker is to be believed.
Earlier this month, my Fool colleague covered the views of ASX broker Goldman Sachs on Telstra. Goldman reiterated its bullish position on the ASX 200 telco, giving Telstra shares a buy rating.
That buy rating came alongside a 12-month share price target of $4.70. If realised, this would see Telstra shares gain 18.1% from the $3.98 share price we see today.
That's obviously a fairly enthusiastic share price target. Goldman stated that it stems from the broker's belief that "low risk earnings (and dividend) growth that Telstra is delivering across FY22-25" will be attractive to investors.
On that dividend growth, Goldman is pencilling in 18 cents per share in fully franked dividend for the 2024 financial year, rising to 19 cents per share for FY2025.
No doubt this will be music to Telstra investors' ears. The telco has long been prized for its robust and generous dividends – particularly since Telstra was able to maintain its shareholder income throughout the pandemic.
News that investors could be enjoying a fully-franked 4.77% yield (based on today's share price) by FY2025 is certainly exciting. But we'll have to wait and see whether Goldman's share price target and dividend projections indeed prove accurate this time next year.
